A Common Explanation for the Behavior of the Short-Run U

question 126

Multiple Choice

A common explanation for the behavior of the short-run U.S. Phillips curve in 2009 and 2010 is that, over the previous 20 or so years, the Federal Reserve had

• A)established a lot of credibility in its commitment to keep inflation at about 2 percent.
• B)established a lot of credibility in its commitment to keep inflation at about 5 percent.
• C)failed to establish significant credibility in its announced intent to keep inflation at about 2 percent.
• D)failed to establish significant credibility in its announced intent to keep inflation at about 5 percent.

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Definitions:

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points from their mean value.

Mean

The arithmetic average of a set of values, or distribution.

Scores

Quantitative measures or values used to represent an individual's performance, ability, or achievement in various contexts.

Statistically Significant

Statistically significant refers to a mathematical measure indicating that an observed pattern or relationship in data is not likely to occur due to chance.